Insiders have been buying these ASX shares this week

Insiders have been buying Nufarm Limited (ASX:NUF) and this ASX share. Here's what you need to know…

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Every so often, I like to take a look to see which shares have experienced meaningful insider buying.

This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors.

A number of shares have reported meaningful insider buying this week. Here are a couple which have caught my eye:

Nufarm Limited (ASX: NUF)

A change of director's interest notice reveals that one of this agricultural chemical company's directors has been buying shares. According to the notice, Non-Executive Independent Director Marie McDonald picked up 12,500 shares through an on-market trade on 2 October. McDonald paid an average of $3.84 per share, which equates to a total consideration of $48,000.

One broker that would agree that this was a smart move is Morgans. Late last month the broker put an add rating and $5.10 price target on Nufarm's shares. Its analysts believe FY 2020 is the bottom of the cycle for the company's earnings and expects strong earnings growth over the coming years.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

According to a change of director's interest notice, this investment house's chairman has been buying shares this month. The notice reveals that Robert Millner picked up a total of 45,000 shares through a series of trades between 30 September and 5 October. Mr Millner paid a total of $1,066,998.32 for the shares, which works out to be an average of $23.71. This has proven to be a successful investment for the company's chairman. This afternoon the Washington H. Soul Pattinson share price is fetching $25.61. This is approximately 8% higher than the price Mr Millner paid for his shares.

However, Morgans isn't as positive on this one. Late last month it put a hold rating and $23.32 price target on the company's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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